6533b82cfe1ef96bd12901aa
RESEARCH PRODUCT
The New Consensus and Post-Keynesian Interest Rate Policy.
Louis-philippe RochonClaude Gnossubject
Endogenous moneyKeynesian economicsKeynesian economicsmedia_common.quotation_subjectEconomics Econometrics and Finance (miscellaneous)Post-Keynesian economicsinterest rates[SHS.ECO]Humanities and Social Sciences/Economics and FinanceInterest rateTaylor ruleGeneral theoryCentral bankPolitical Science and International RelationsEconomics[ SHS.ECO ] Humanities and Social Sciences/Economies and finances[SHS.ECO] Humanities and Social Sciences/Economics and FinanceFunction (engineering)ComputingMilieux_MISCELLANEOUSmedia_commonTaylor's ruledescription
Abstract This paper outlines the fundamental arguments of the New Consensus, critiques it from a Post-Keynesian perspective, and offers a Post-Keynesian alternative to the Taylor Rule. While Post-Keynesian economics provides a theory of endogenous money with exogenous interest rates, it has no clear description of a central bank reaction function. We attempt to remedy this oversight by identifying some of the difficulties attached to developing a Post-Keynesian reaction function, and suggesting an approach to the setting of interest rates that is more consistent than the Taylor Rule with Keynes's General Theory.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2007-07-01 |